26 June 2010

Goodbye to BJCorp’s Investors

While everyone seems keen to take part in sports betting starting English Premier League on August, prime minister suddenly surrender to political wills for NOT allowing the license last night.

The license was said to be already given to Ascot Sports Sdn Bhd “orally”, and since then, Berjaya Corp (BJCorp) had acquired 70% stake in Ascot Sports for RM 525 million. Shareholders are happy and many analysts are setting high target price for BJCorp. Due to objections from various parties on sports betting, Tan Sri Vincent Tan (BJCorp largest shareholder and Ascot Sports’ owner) surprise us for donating the entire proceeds of RM525 million to charity.

Let’s examine the issue carefully…
  1. If he is so confident, why Tan Sri Vincent Tan sell its stake in Ascot Sports before officially getting the green light?
  2. Why not after, when he can fetch a higher value than RM525 million?
  3. In the first place, why Tan Sri Vincent Tan would like to share the pie with investors?
It is expected that BJCorp will issue a statement on Monday in relations to this issue. Hope the press conference will went through smoothly. Take care.

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